BANKOK, Oct 10 (XINHUA/APP) :The Bank of Thailand (BoT), the country’s central bank, announced on Thursday that it will liberalize capital outflows as one of the new measures to curb the baht’s rapid rise.
BoT Governor Veerathai Santiprabhob said the central bank’s Monetary Policy Committee (MPC) has expressed concerns with the much rapid rise of the Thai baht.
“The BoT will roll out additional measures to curb the rising Thai baht, which will be ready in one or two months,” said Veerathai, adding “the new package of measures would cover three key areas.”
In a report released by the BoT, the first measure involves liberalizing capital outflows by allowing individual investors and institutional investors to take more money out of the country to invest abroad.
Exporters will also be allowed to park their money abroad when they earn income overseas. The BoT will also liberalize the currency exchange business and cross-border payment services in order to reduce the cost of cross-border transactions for people and businesses.
Secondly, the BoT will look into the import and export of gold in order to ensure that the gold trade would not move the value of the baht sharply.
Thirdly, the BOT will look into the structure of current account surplus. The Thai baht hit a six-year high on Wednesday and on Thursday it moved at around 30.30 baht per U.S. dollar.